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Expert talks impact of Turkish lira exchange rate on Azerbaijan's economy

25 December 2021 14:37 (UTC+04:00)
Expert talks impact of Turkish lira exchange rate on Azerbaijan's economy

By Trend

The drop in the Turkish lira exchange rate impacts the economy of Azerbaijan mainly in two directions, Azerbaijani economic expert Ayyub Karimli said, Trend reports.

According to Karimli, the Central Bank of Turkey made a decision a few days ago to reduce the discount rate from 15 to 14 percent.

"The first direction implies influence on consumers, who receive certain benefits. Simultaneously with the drop in the Turkish lira exchange rate, demand and interest in Turkish goods are growing because prices for them decrease," he noted.

The expert also said that the second direction implies the impact on the investment environment because Turkey is one of the main countries - trade partners of Azerbaijan. Since the beginning of 2021, the trade turnover between the two countries has amounted to nearly $5 billion. Azerbaijani companies totally have invested over $20 billion in Turkey, and some of them are engaged in economic activities in this country.

"The drop in the exchange rate of the Turkish lira may slightly affect the Azerbaijani companies which have invested in Turkey," added Karimli.

According to the Central Bank of Azerbaijan, as of December 24, the exchange rate of the lira to the Azerbaijani manat was 1TL/0.1475 AZN.

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